Perspectives & Insights Article

The carbon footprint of a company factors heavily into its Environmental rating — both the amount of carbon generated as a result of a company’s operations, as well as the carbon impact of the company’s finished goods or services...

As defined by Sustainalytics, a firm focused solely on providing ESG research on publicly-traded companies, Governance analysis is an evaluation of how well a company is structured and managed in order to “build sustainable, long-term value that can be delivered to shareholders and other stakeholders in a fair and transparent manner.”

Social factors encompass a wide range of topics related to how a company impacts all of its “stakeholders,” including employees, customers, and the communities in which it operates.

Environmental, Social and Governance (ESG) investing has gained popularity as both individual and institutional investors are embracing sustainable investing and integrating ESG analysis into the investment decision-making process. There is also evidence that aligning investors’ desire for return with the needs of other stakeholders, including customers, employees, and local communities, can be a winning combination...

The popularity of low-cost passive investment strategies has garnered significant press recently, leading many to question if active management is dead or simply doesn’t work. Underperformance of the average active investment manager has certainly added fuel to the fire, as investors search for cheaper index alternatives.